On a recent webinar with CharTec, they shared average marketing and sales conversion rates for the managed services industry. Summary – MSPs need a lot of leads to close even one sale!
At a 1% overall close rate, you will need to have 100+ leads at the top of your funnel that your marketing team is nurturing to help your sales team close one managed services deal.
The example CharTec used in the webinar is if you have a goal of closing 4 new leads, you will need at least 400 leads to start. Other average conversion rates CharTec shared for Managed Service Providers (MSPs) included:
As a reminder, these are industry average conversion rates for as-a-service offerings. This can and will be different depending on the company and other variables. To determine your conversion rates, you will need to work backwards. Think about the following:
Simply take the top number, divide it by the bullet point below it, and multiple the number by 100 to get your conversion rate for each stage of your sales and marketing funnel. For example, (4 new accounts won / 8 proposals presented) x 100 = 50% conversion rate from proposal to close a managed services deal. Meaning, you can expect to close 50% of the managed services proposals you present.
So how do you get a healthy amount of leads and build your marketing leads list so you’re able to reach your goals? A few lead gen examples provided on the CharTec webinar included:
(Listen to our recorded webinar with CharTec that goes through different marketing lead gen tactics to increase your managed services sales.)
CharTec reminded us that it typically takes on average 5-7 touches to engage a lead. Of the 400 leads needed to close 4 new deals, you will need different marketing tactics to nurture them and convert 10% of them to take a first interaction and connect them with your sales team. The further a lead gets down the funnel, the higher the conversion rate should be to potentially closing them as a new customer.
Once you have the leads passed on to the sales team, are you able to confidently close them? Learn how to increase your managed services close rate with our Sales Simplicity Seminars!
Brittney Stepanek, Strategic Marketing Director for Collabrance, is responsible for helping build relationships and brand awareness through strategic marketing initiatives. Before working at Collabrance, Brittney joined GreatAmerica in 2012 doing marketing for the Office Equipment Group. She received her Bachelor of Science in Psychology at the University of Iowa.